893.61331/168: Telegram

The Consul at Tsingtao (Sokobin) to the Secretary of State

199. Reference Department’s 296, September 29, 1 p.m. to Tokyo via Shanghai. Japanese military mission in direct interview with the Universal Leaf Tobacco Company here stated it may require company [Page 463] to buy Federal Reserve Bank currency at official rate of exchange for at least two-thirds of company’s purchases of leaf in Shanghai. Later a company official and I interviewed Japanese Consul who invited “counter offer” from company. Today company representative and I saw Japanese Consul and informed him company had no counter offer to make and all we asked was that company engage in leaf business on same basis as Chinese and Japanese leaf companies. Japanese Consul will consult military officials and inform us in a few days.

Repeated to Peiping and to Shanghai. True reading to Tokyo by air mail.

Sokobin